Key indicators: Denmark headed towards lowest annual exports since financial crisis
Exports fell by 1.5% in July. In the first seven months of 2018, exports have only increased by 0.4% relative to last year.
“Exports remain weak, and if this trend does not change, we are unfortunately headed towards the lowest annual exports since the financial crisis. The slump in exports is highly surprising, because there is relatively high growth in export markets,” says Senior Analyst Allan Søren, the Confederation of Danish Industry.
“International demand ought to be strong enough to boost exports. We therefore hope to see exports recover in the last half of 2018. At the moment, there are particularly good opportunities for Danish export companies in the US and European markets,” says Allan Sørensen.
In the past year, exports to Sweden, the UK, US and China have fallen, while exports to Euro countries such as Germany, France and the Netherlands have increased.
“The past year’s strengthening of the krone can pose a challenge for export companies. Either they earn less money on their goods when exchanging, or their goods become more expensive for foreign customers,” says Allan Sørensen.
“The labour shortage may also have contributed to the decrease in export orders. Private consumption and investment are on the rise in Denmark, and companies with difficulty supplying to everyone may choose to focus on domestic customers and thereby avoid the hassle of customs duties and fluctuating currency rates,” notes Allan Sørensen.